GLOBAL

CLOUD
REPORT
State of the Cloud
Summer 2020
 MAJOR PLATFORMS

AMAZON
Corporate net sales for Amazon were up 40% year-on-year (YoY), driven by increased shopping interest on the global
platform as people remained quarantine due to COVID-19. AWS more than held its own, with revenue up 29% YoY, with
quarterly revenue surpassing $10 billion for the first time. Several new US sites were acquired in the first half in Northern
Virginia and Columbus, and the big site acquired for Amazon in Santa Clara is already under construction. Three new
regions are coming soon, with intriguing secondary markets Jakarta, Madrid, and Osaka underway, and the continued
rollout of AWS Outposts securing the edge environment.

MICROSOFT
Microsoft enjoyed a positive second quarter, with overall revenue up 13% YoY led by Azure storming to a 47%
increase as companies rapidly moved their platforms to the cloud due to their newly distributed workforces. A
new campus is under construction in Northern Virginia, and the company secured a new site in the Chicago
suburb of Elk Grove Village early in the year. Seven new regions are underway globally, with comprehensive
investment and educational plans in Warsaw, Queretaro, and Milan going beyond a mere data center roll-
out. Azure signed big client wins in July with Halliburton and Fonterra, the latter spurred by a new region in
Auckland.

GOOGLE
Google parent company Alphabet had a bumpier second quarter due to a drop-off in online
advertising income, with revenue down 2% YoY, a number that would have been lower were it not
for the 43% increase in Google Cloud revenue over the same period. Google is adding another nine
regions for Cloud, with optimization coming in all data centers thanks to advances in artificial
intelligence that will distribute non-immediate workloads to their most cost-effective deployment
times. The company enjoyed several major recent wins, with Renault, Orange, and Deutsche
Bank all signing on for Google Cloud services.

GAINING & GROWING

As work from home regulations swept the globe early in springtime,
usage of teleconferencing services skyrocketed, led by Zoom that
grew from ten million to 300 million daily users. In response to
security concerns, the company has just acquired Keybase for video Unusual
encryption services and deployed on Oracle Cloud for the extreme
scalability now required. circumstances led
In other Oracle Cloud news, the company announced newly opened millions to work
regions in Montreal, Amsterdam, Osaka, Melbourne, and Jeddah,
with San Jose, Newport, Singapore, Hyderabad, Santiago, Belo from home and
Horizonte, Chuncheon in South Korea, two regions in South Africa,
additional capacity in Saudi Arabia, and a new region in Israel solely utilize many cloud
for use by the Israeli government all coming soon. Despite original
speculation to the contrary, Oracle has chosen to utilize colocation services for the
first time, with
facilities for speed of rollout.
Alibaba announced plans to spend $28 billion on cloud
infrastructure in the coming three years as the platform aims for
growth outside of China and builds out a truly global platform
a corresponding
that surpasses its current 63 availability zones. It is expected that
colocation in already-constructed facilities will represent a large
increase in
portion of this expenditure for reasons of cost and timeliness. revenues for
major providers.
In an intriguing benefit for market watchers, NASDAQ has launched
its NASDAQ Cloud Data Service, providing real-time data and
index information that can be accessed via APIs for ease of data
integration. The platform operates on AWS and included a variety
of products.

GLOBAL CLOUD REPORT

 CLOUD SERVICE REVENUE

REVENUE PROJECTIONS ($B) MARKET SHARE (2019)

$160 AWS Azure Google Cloud Others

$140

$120
20%
$100

$80
7%
$60 52%
$40

$20 21%
$0
2019 2020 2021 2022 2023 2024
AWS Azure Google Cloud Others

PROJECTED MARKET SHARE (2024)

AWS Azure Google Cloud Others

RECENT MAJOR CLOUD DEALS

Company Cloud Service

18%

HSBC AWS
12% 40%
Zoom Oracle

Halliburton Microsoft

Renault Google 30%

Deutsche Bank Google

INNOVATION
GEOGRAPHY
EDGE SUMMER 2020
MAJOR CLOUD SERVICE AVAILABILITY

AWS REGION MAP

New regions: Jakarta, Madrid, Osaka

24 REGIONS | 76 AVAILABILITY ZONES

AZURE REGION MAP

New regions: Queretaro, Madrid, Tel Aviv,
Doha, Milan, Warsaw, Auckland

54 REGIONS | 10 AVAILABILITY ZONES

GOOGLE CLOUD REGION MAP

New regions: Warsaw, Doha, Toronto,
Melbourne, Delhi, Paris, Milan, Santiago,
Madrid

24 REGIONS | 73 AVAILABILITY ZONES

Maps courtesy of Structure Research

Global Data Center Advisory Group

Cushman & Wakefield’s Data Center Advisory Group is a global team of elite professionals delivering specialized real estate
solutions for mission critical users, owners, and environments. With scalability, reliability, and security as a driving force, our
highly knowledgeable and responsive professionals guide clients to make effective financial decisions. Our expertise ranges
includes colocation facilities, control centers, greenfields, powered shell, and trading floors. We lend additional value through our
understanding of global dynamics and their impact on local markets.

For more information, please contact:

Dave Fanning Kevin Imboden
Executive Managing Director Director of Research
Data Center Advisory Group Leader Data Center Advisory Group Leader
+1 303 818 7376 +1 408 436 3622
dave.fanning@cushwake.com kevin.imboden@cushwake.com

©2020 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain
errors or omissions and is presented without any warranty or representations as to its accuracy.